Professional Documents
Culture Documents
CHINA’S
CHANGING ROLE IN
THE MIDDLE EAST
Jonathan Fulton
CHINA’S
CHANGING ROLE IN
THE MIDDLE EAST
Jonathan Fulton
ISBN-13: 978-1-61977-590-9
Cover: Flags of Saudi Arabia and China are hanged in front of Tiananmen Gate before Saudi Crown Prince
Mohammed bin Salman’s visit in Beijing, China February 21, 2019. REUTERS/Jason Lee.
This report is written and published in accordance with the Atlantic Council Policy on Intellectual Independence.
The author is solely responsible for its analysis and recommendations. The Atlantic Council and its donors do
not determine, nor do they necessarily endorse or advocate for, any of this report’s conclusions.
June 2019
TABLE OF CONTENTS
Overview1
OVERVIEW
A
quiet shift in geopolitics has been taking as a “wary dragon” in MENA, the extent of Chinese in-
place, with East Asia and the Middle East fluence in the region is still at an early stage, but China
drawing closer together. Energy trade ex- is becoming an increasingly relevant regional actor.2
plains part of this, as Japan, South Korea, and
China are consistently among the largest export mar- This report begins with an analysis of China’s presence
kets for Middle Eastern oil and gas. As the global eco- in MENA, with a brief discussion of the BRI, followed by
nomic center of gravity moves east, economic relations a deeper look at how this initiative is shaping China’s
between the two regions are becoming increasingly relations with states across the region. It then examines
deep and multifaceted. the response of Middle Eastern states, many of which
need to develop a more diversified set of relationships
In the case of China, the relationships have moved be- with extraregional powers, especially given the percep-
yond economic interests, to incorporate strategic con- tion that leaders in the United States want to reduce
cerns as well. The Belt and Road Initiative (BRI), called the US regional footprint. It ends with an analysis of
“the most significant and far-reaching initiative that how US-China competition plays out in the region: are
China has ever put forward” is dramatically expanding their interests compatible, creating opportunities for
Chinese interests and influence in the Middle East and cooperation, or do they diverge to the point that com-
North Africa (MENA) region.1 Described in a 2016 report petition is the most likely outcome?
1 Michael Swain, “Chinese Views and Commentary on the ‘One Belt, One Road’ Initiative,” China Leadership Monitor 47, 2 (2015), 3.
2 Andrew Scobell and Alireza Nader, China in the Middle East: The Wary Dragon (Santa Monica, Calif: RAND Corporation, 2016).
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China’s Changing Role In The Middle East
3 Thus far, the best description and analysis of the BRI in English is Nadège Rolland, China’s Eurasian Century? Political and Strategic
Implications of the Belt and Road Initiative (Seattle: The National Bureau of Asian Research, 2017). A good primer on the BRI in MENA
is Anoushiravan Ehteshami and Niv Horesh, eds., China’s Presence in the Middle East: The Implications of the One Belt, One Road
Initiative (London: Routledge, 2018). It also features in the analysis in James Reardon-Anderson, ed., The Red Star & The Crescent:
China and the Middle East (London: Hurst & Company, 2018).
4 Lily Kuo and Niko Kommeda, “What is China’s Belt and Road Initiative?” Guardian, July 30, 2018, https://www.theguardian.com/cities/
ng-interactive/2018/jul/30/what-china-belt-road-initiative-silk-road-explainer.
5 “Vision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Road,” National Development and
Reform Commission, Ministry of Foreign Affairs, and Ministry of Commerce of the People’s Republic of China, with State Council
Authorization, March 2015, http://en.ndrc.gov.cn/newsrelease/201503/t20150330_669367.html.
6 He Yini, “China to Invest $900b in Belt and Road Initiative,” China Daily, May 28, 2015, https://usa.chinadaily.com.cn/
business/2015-05/28/content_20845687.htm.
7 “Joint Communique of the Leaders Roundtable of the Belt and Road Forum for International Cooperation,” Ministry of Foreign Affairs
of the People’s Republic of China, May 16, 2017, https://www.fmprc.gov.cn/mfa_eng/zxxx_662805/t1462012.shtml.
8 Brenda Goh and John Ruwitch, “Pressure on as Xi’s ‘Belt and Road’ Enshrined in Chinese Party Charter,” Reuters, October 24, 2017,
https://www.reuters.com/article/us-china-congress-silkroad/pressure-on-as-xis-belt-and-road-enshrined-in-chinese-party-charter-
idUSKBN1CT1IW.
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Partnership Priorities
Comprehensive Strategic Partnership Full pursuit of cooperation and development on regional and
international affairs
Source: “Quick Guide to China’s Diplomatic Levels,” South China Morning Post, January 20, 2016.
Iranians, and the Emiratis and Qataris. Beijing’s apolit- offer paths toward improved relations regarding other
ical, development-focused logic is important; despite issues.12 China’s use of strategic partnerships has a hi-
the inherently strategic nature of international infra- erarchal range of relations, from a “friendly cooperative
structure construction, Chinese leaders insist that the partnership” at the bottom rung to a “comprehensive
BRI is an inclusive initiative, and push back against at- strategic partnership” at the top (see Table 1). Each
tempts to exclude certain states.9 This framing of the level has different priorities, but little in the way of for-
BRI allows China to expand its presence in an intensely mal commitment; the highest level is a pledge for “full
competitive environment without getting bogged pursuit of cooperation and development,” but does not
down in political and security interests. lock either side into potentially costly political or secu-
rity arrangements.
Hierarchy of China’s MENA Partnerships
In its relations with MENA states, China has been
A diplomatic tool China has adopted that facilitates steadily developing several partnership agreements
this “fence-sitting” is the use of partnership diplomacy, (see Table 2). Tellingly, these partnerships have not in-
rather than alliances.10 In an alliance, the stronger side serted China into any regional competitions. For exam-
fears entrapment or getting entangled in the weaker ple, in January 2016, Xi made his first visit to the Middle
side’s conflicts, while the weaker side fears abandon- East as president, stopping initially in Saudi Arabia,
ment.11 Strategic partnerships remove these fears by where the two countries signed a comprehensive stra-
reducing the commitments. Both sides agree to coop- tegic partnership.13 He then flew directly to Tehran and
erate on areas of shared interests while managing areas elevated Iran to the same level.14 As of 2019, China has
of potential competition. By working on common inter- signed comprehensive strategic partnerships with five
ests, they are goal-driven rather than threat-driven, and MENA states and strategic partnerships with eight
9 Xie Tao, “Is China’s ‘Belt and Road’ a Strategy?” Diplomat, December 16, 2015, http://thediplomat.com/2015/12/is-chinas-belt-and-road-
a-strategy/.
10 Jonathan Fulton, “Friends with Benefits: China’s Partnership Diplomacy in the Gulf,” Project on Middle East Political Science Studies 32,
2019.
11 Glen Snyder, “The Security Dilemma in Alliance Politics,” World Politics 36, 4 (1984).
12 Georg Strüver, “China’s Partnership Diplomacy: International Alignment Based on Interests or Ideology,” Chinese Journal of
International Politics 10, 1 (2017), 32–37.
13 “KSA, China Agree on Strategic Partnership,” Arab News, January 21, 2016, http://www.arabnews.com/saudi-arabia/news/868276.
14 “China, Iran Lift Bilateral Ties to Comprehensive Strategic Partnership,” Xinhua, January 23, 2016, http://www.chinadaily.com.cn/
world/2016xivisitmiddleeast/2016-01/23/content_23215522.htm.
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China’s Changing Role In The Middle East
others. That Saudi Arabia, the United Arab Emirates In the Middle East, a burst of high-level diplomatic ac-
(UAE), Iran, Egypt, and Algeria are the only MENA tivity since 2013 has corresponded with deeper BRI
states with comprehensive strategic partnerships indi- engagement throughout the region. Those states that
cates that Beijing perceives them as the most import- do not yet have partnership agreements with China
ant regional states, and also demonstrates that China’s can be expected to sign mid-level partnerships during
Middle East policy is more heavily weighted toward the state visits or multilateral forums like the Belt and Road
Gulf region. This is also evident in the fact that every Forum, China-GCC Strategic Dialogue, or China-Arab
Gulf Cooperation Council (GCC) state, except Bahrain, States Cooperation Forum.
has signed a partnership with China.
These partnerships show which states China is using as
It is noteworthy that all MENA partners signed their the foundation for its MENA policy. The highest level is
partnerships agreements in the past decade, with not easily attained. The bilateral relationship needs to
the exception of Egypt, which signed one with China include high levels of political trust and multifaceted
in 1999. Egypt and the UAE, which signed a strate- economic ties, and, to be considered at this level, a state
gic-partnership agreement with China in 2012, are also needs to be perceived as playing “an important role in
outliers in that all other MENA partnership agreements international economics and politics.”16 For example,
started at their current level. Typically, Chinese partner- when President Xi visited the UAE in 2018, the China-
ships progressed up the hierarchy, with state visits of- Emirati relationship was elevated to a comprehen-
fering opportunities to upgrade existing relationships.15 sive strategic partnership, building upon the strategic
15 Feng Zhongping and Huang Jing, “China’s Strategic Partnership Diplomacy: Engaging with a Changing World,” European Strategic
Partnership Observatory, working paper 8 (2014), 9.
16 Strüver, “China’s Partnership Diplomacy,” 45.
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partnership established in 2012. The joint communique each other’s advantages and potentials,
praised “the constructive role being played by the UAE promote international production capac-
in regional affairs.”17 This indicates that Beijing shares ity cooperation and enhance cooperation
the UAE’s vision of MENA order, and this recognition in the fields of infrastructure construction,
offers Chinese support for the UAE’s regional policy. trade and investment facilitation, nuclear
power, space satellite, new energy, agricul-
On the other hand, when Emir Tamim Al Thani of Qatar ture and finance, so as to achieve common
visited Beijing in January 2019, the relationship was progress and development and benefit our
not upgraded, with the two sides agreeing to instead two peoples. 20
deepen cooperation through the existing strategic
partnership signed in 2014.18 While it is not explicit, In the subsection on BRI cooperation, the Arab Policy
it appears that Beijing has quietly chosen to support Paper introduced the “1+2+3” cooperation pattern,
Abu Dhabi over Doha in the ongoing Gulf crisis. This is under which China and Arab countries “upgrade prag-
not surprising; deeper ties with the Anti-Terror Quartet matic cooperation by taking energy cooperation as
(UAE, Saudi Arabia, Bahrain, and Egypt) offer more to the core, infrastructure construction and trade and in-
Beijing than Qatar can. At the same time, Qatari liqui- vestment facilitation as the two wings, and high and
fied-natural-gas (LNG) exports to China account for new technologies in the fields of nuclear energy, space
28 percent of China’s domestically consumed LNG, satellite and new energy as the three breakthroughs.”21
making continued good relations with Qatar important Since the release of this policy paper, the shape of
for China’s energy security.19 Caught between the two Sino-GCC relations has taken a much more specific
sides, China has tipped the scales toward the UAE, but, form, following this 1+2+3 pattern, with energy tech-
at the same time, has worked to maintain a positive nology an especially important component of relations.
relationship with Qatar.
The China-GCC Strategic Dialogue began in Beijing in
2010, and there have been two other rounds since then,
Chinese Multilateralism in MENA
with one in Abu Dhabi in 2011 and another in Beijing in
Beyond the partnerships, there have been policy doc- 2014. While this dialogue has produced little in the way
uments outlining the shape of China-MENA coopera- of tangible outcomes, its relevance is in setting the path
tion in the BRI era. The first, mentioned above, was the for short-term cooperation, with economic cooperation
Vision and Actions paper, which offered a brief glimpse at the forefront. It is the multilateral mechanism that
of how the Middle East fits into the initiative. It refers China and the GCC have used to revive negotiations for
to two multilateral initiatives that can contribute to the long-anticipated China-GCC free-trade agreement
BRI cooperation—the China Arab States Cooperation (FTA). Negotiations began in 2004, but had stalled by
Forum (CASCF) and the China-GCC Strategic Dialogue. 2009.22 The introduction of the Strategic Dialogue has
Vision and Actions’ emphasis on cooperation priorities revived talks, gaining momentum in early 2016 when
indicates that the means by which China has already President Xi announced a preference that negotiations
been developing bilateral relationships across MENA conclude quickly.23 A series of negotiations was held
will dovetail with the BRI. The China Arab Policy Paper, throughout 2016 in Saudi Arabia and China, although
released in 2016 to coincide with President Xi’s trip to the deal has yet to be concluded.
the Middle East, is a more specific document, stating:
The CASCF was established during a 2004 state visit
China is willing to coordinate development to Egypt by President Hu Jintao, during which he met
strategies with Arab states, put into play with Arab League Secretary-General Amr Moussa. The
17 “UAE, China Issue Statement on Strategic Partnership,” Gulf Today, July 21, 2018, http://gulftoday.ae/portal/fe7e22af-6fcf-4caf-ac37-
134985a5f88f.aspx.
18 “China, Qatar Agree to Deepen Strategic Partnership,” Xinhua, February 1, 2019, http://www.china.org.cn/world/2019-02/01/
content_74431225.htm.
19 China to Become Top Gas Importer in 2019 Boosted by LNG—IEA,” Reuters, June 26, 2018, https://www.reuters.com/article/gas-iea/
china-to-become-top-gas-importer-in-2019-boosted-by-lng-iea-idUSL1N1TR114.
20 “Full Text of China’s Arab Policy Paper,” Xinhua, January 14, 2016, http://www.china.org.cn/world/2016-01/14/content_37573547.htm.
21 Ibid.
22 Qian Xuming and Jonathan Fulton, “China-Gulf Economic Relationship Under the ‘Belt and Road’ Initiative,” Asian Journal of Middle
Eastern and Islamic Studies 11, 3 (2017), 16–17.
23 “GCC and China Decide to Speed Up Free Trade Talks,” Saudi Gazette, January 18, 2017, http://saudigazette.com.sa/
article/147021/?page=1.
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Egypt’s President Abdel Fattah al-Sisi, left, shakes hands with Chinese President Xi Jinping during the Forum on China-Africa
Cooperation held at the Great Hall of the People in Beijing, September 3, 2018. Andy Wong/POOL Via REUTERS
CASCF was created as a multilateral platform for China in Beijing, as it signaled a Chinese commitment to MENA
and the states of the twenty-two-member Arab League stability through development, as well as a model for
to exchange views and promote cooperation in politics, MENA connectivity in the BRI. In terms of development,
trade, culture, technology, and international affairs.24 A China pledged more than $23 billion in loans, aid, and
ministerial meeting is held every other year, attended investments: $20 billion in loans for states with recon-
by the foreign ministers of all CASCF member states. struction needs, $3 billion in special loans for the region’s
At these meetings, common goals for the next two financial sector, nearly $150 million to support social sta-
years are established; during the 2016 ministerial meet- bility, and $90 million in humanitarian and reconstruc-
ing, BRI cooperation and the 1+2+3 cooperation pat- tion aid for Yemen, Syria, Jordan, and Lebanon.26 This
tern were the focus.25 focus on development as a path to stability is a com-
mon theme when Chinese leaders discuss MENA secu-
The CASCF gained greater international notice in the rity. China’s ambassador to the CASCF, Li Chengwen,
summer of 2018, when its ministerial meeting was held has said, “The root problems in the Middle East lie in
24 “Backgrounder: China-Arab States Cooperation Forum,” Xinhua, May 12, 2016, http://news.xinhuanet.com/english/2016-
05/12/c_135354230.htm.
25 “The 7th Ministerial Meeting of the China-Arab States Cooperation Forum Concludes in Doha,” Ministry of Foreign Affairs of the
People’s Republic of China, May 12, 2016, http://www.fmprc.gov.cn/mfa_eng/zxxx_662805/t1363599.shtml.
26 Laura Zhou, “China Pledges US$23 Billion in Loans and Aid to Arab States as it Boosts Ties in Middle East,” South China Morning Post,
July 10, 2018, https://www.scmp.com/news/china/diplomacy-defence/article/2154642/china-pledges-us23-million-loans-and-aid-arab-
states-it.
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development and the only solution is also in develop- into a deeper level of intraregional integration among
ment.”27 Foreign Minister Wang Yi made a similar point participating states.
in 2014, saying, “We believe development holds the key
and serves as the foundation for solving all problems…
China’s Relations with Non-Arab MENA
As far as Arab countries are concerned, the most crucial
States
task facing them is national development and economic
revitalization.”28 China is also deepening ties with non-Arab MENA
states as they pursue BRI projects. Israel, Turkey, and
Beyond this commitment to development, another Iran all feature in the BRI, although each presents com-
initiative announced during the 2018 CASCF is the plications for China. In Israel’s case, it is a stable, highly
“industrial park-port interconnection, two-wheel and developed state in a volatile region, contributing to
two-wing approach.” This inelegantly named plan is a perception that it is a safe destination for Chinese
a key pillar in how the connectivity elements of the investment. It also enjoys geostrategic importance,
BRI will play out in MENA, signaling which states China providing another access point to the Mediterranean
plans to work with most closely. In this configuration, Sea, making it a potentially useful transportation and
the two wheels are energy cooperation (conventional logistics hub. With relatively strong economic rela-
oil and gas, and low-carbon energy), and the two wings tions, Israeli-Chinese cooperation in the BRI makes
are cooperation in technology (artificial intelligence, sense. The “Red-Med railway,” connecting Eilat on the
mobile communications, satellite navigation) and in- Red Sea to Ashdod on the Mediterranean, would pro-
vestment and finance.29 This appears to build upon the vide an alternative access route, lessening China’s de-
1+2+3 cooperation approach. pendence on Suez and providing strategic depth.30 In
2015, China’s Shanghai International Port Group won a
The “industrial park-port interconnection,” however, twenty-five-year contract to operate Haifa port, which
is something new—or at least a new way of looking also supports the BRI. At the same time, Israel’s trou-
at something China has already been doing in the re- bled relations with many of its neighbors complicate
gion—and again underscores Beijing’s view of MENA the relationship for China. At its core, the BRI is about
connectivity. In this plan, regional industrial parks international connectivity, and Israel is limited in this
being developed by Chinese consortiums will link up regard. This underscores another consideration for
with ports where China has also developed a strong China: deeper ties to Israel run the risk of alienating
presence, building business clusters and linking supply other important MENA partners.
chains across MENA. Here the Arabian Peninsula plays
the central role. The industrial parks are Khalifa Port Turkey also presents opportunities, as well as compli-
Free Trade Zone (KPFTZ) in Abu Dhabi, UAE; Oman’s cations. It is featured as an endpoint in the CCWAEC,
Duqm Special Economic Zone Authority (SEZAD); the providing an overland route to the Aegean Sea and
Jazan City for Primary and Downstream Industries COSCO’s Piraeus Port in Greece. Trade between China
(JCPDI) in Saudi Arabia; and the TEDA-Suez zone in and Turkey has grown impressively in recent years, from
Ain Sokhna, Egypt. The ports are Khalifa Industrial around $10 billion in 2006 to just over $26 billion in 2017,
Zone Abu Dhabi (KIZAD); SEZAD in Oman; the and $15 billion in Chinese foreign direct investment
People’s Liberation Army Support Base in Djibouti; and (FDI) into Turkey between 2005 and 2018.31 Despite this,
Port Said in Egypt. Taken together, these offer China a Beijing is wary about Turkey. In early 2019, Turkey be-
chain of strategically situated hubs in the Persian Gulf, came the first Muslim-majority state to publicly criticize
Arabian Sea, Red Sea, and Mediterranean Sea, and China for its mass internment of Uighurs in Xinjiang, with
offer a possible glimpse of how the BRI may evolve a Foreign Ministry spokesperson describing it as “a great
27 “Development Key to Solving Middle East Problems: Chinese Diplomat,” Xinhua, August 25, 2016, www.xinhuanet.com/english/2016-
08/25/c_135630804.htm.
28 “Wang Yi Gave an Interview to Al Jazeera,” Ministry of Foreign Affairs of the People’s Republic of China, January 9, 2014, https://www.
fmprc.gov.cn/mfa_eng/wjb_663304/wjbz_663308/2461_663310/t1116509.shtml.
29 “Wang Yi: China and Arab States Should Jointly Forge the Cooperation Layout Featuring ‘Industrial Park-Port Interconnection, Two-
Wheel and Two-Wing Approach,’” Consulate-General of the People’s Republic of China in Kuching, July 10, 2018, https://kuching.
chineseconsulate.org/eng/news/t1576567.htm.
30 Yoram Evron, “The Challenge of Implementing the Belt and Road Initiative in the Middle East: Connectivity Projects Under Conditions
of Limited Political Engagement,” China Quarterly 237, 1 (2019), 10.
31 “China Global Investment Tracker,” American Enterprise Institute, http://www.aei.org/china-global-investment-tracker/.
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China’s Changing Role In The Middle East
32 Gerry Shih, “After Years of Silence, Turkey Rebukes China for Mass Detention of Muslim Uighurs,” Washington Post, February
10, 2019, https://www.washingtonpost.com/world/after-years-of-silence-turkey-rebukes-china-for-mass-detention-of-muslim-
uighurs/2019/02/10/011c7dd6-2d44-11e9-ac6c-14eea99d5e24_story.html?utm_term=.b6624de55c53.
33 “China’s Crude Oil Imports from Iran (2011-2016),” Middle East Institute, https://www.mei.edu/resources/infographic/chinas-crude-oil-
imports-iran-2011-2016.
34 “First Freight Train from China Arrives in Iran in ‘Silk Road’ Boost,” Reuters, February 16, 2016, https://www.reuters.com/article/us-
china-iran-railway-idUSKCN0VP0W8.
35 John Garver, “China and the Iran Nuclear Negotiations: Beijing’s Mediation Effort,” in James Reardon-Anderson, ed., The Red Star & the
Crescent (London: Hurst and Company, 2018), 124.
36 Robert A. Manning and Bharath Gopalaswamy, “Is Abdulla Yameen Handing Over the Maldives to China?” Foreign Policy, March 21,
2018, https://foreignpolicy.com/2018/03/21/is-abdulla-yameen-handing-over-the-maldives-to-china/.
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shortcoming. China has set up Confucius Institutes to While starting from a low level, especially compared
teach Chinese language and culture in Bahrain, Egypt, with their deep familiarity with the West, Middle
Iran, Israel, Jordan, Lebanon, Turkey, and the UAE. An Easterners are becoming more culturally aware of China.
interesting outcome of Saudi Crown Prince Mohammed As BRI-funded projects under the “people-to-people
Bin Salman’s 2019 trip to China was a commitment to bonds” cooperation priority develop, this can be ex-
introduce Chinese language instruction at all stages of pected to increase.
Saudi school and university education.37 Clearly, the aim
on both sides is to increase cultural and linguistic fluency.
Conclusion
Tourism has also been a factor in deeper cultural aware- In short, China’s BRI and “soft-power” language and
ness. The number of Chinese traveling overseas has in- tourism ambitions in MENA indicate that it aspires to a
creased dramatically in recent years, and Middle Eastern greater role in a region that it perceives as strategically
countries—while lagging far behind European, Asian, important. Its vision for its role is clearly articulated,
and American destinations—are offering incentives, and dovetails with existing bilateral relationships under
such as visas upon arrival, to draw in Chinese tourists. the BRI’s cooperation priorities. Another important
Not surprisingly, the Gulf monarchies have been the point is that China’s approach to MENA is essentially
most successful thus far, forecasting an 81-percent in- consistent with the regional status quo. In partnering
crease in Chinese tourists between 2018 and 2022.38 The with the UAE, Saudi Arabia, and Egypt, China appears
UAE is leading in this regard, with Dubai alone seeing to be wary of disrupting a delicate and volatile order.
more than four hundred thousand Chinese visitors in By working with Turkey and Iran through partnerships,
the first half of 2018.39 Emirati hotels have been active in but keeping them somewhat at arm’s length, China
luring Chinese tourists, implementing a program called seems conscious of the fact that deeper ties with them
China Ready. To gain certification, hotels must employ could alienate key regional players and threaten the
Chinese speakers as greeters, have trained Chinese gains it has made. At the same time, its inclusiveness
chefs on staff, and provide Chinese newspapers and seems to look toward all future scenarios, keeping
television channels.40 doors open in Tehran and Ankara.
37 “Saudi Arabia to Include Chinese Language in Educational Curriculum,” Al Arabiya, February 22, 2019, http://english.alarabiya.net/en/
News/gulf/2019/02/22/Saudi-Arabia-to-include-Chinese-language-in-educational-curriculum.html.
38 Sam Bridge, “Gulf Forecast to See 81% Rise in Chinese Tourists by 2022,” Arabian Business, December 19, 2018, https://www.
arabianbusiness.com/travel-hospitality/409972-gulf-forecast-to-see-81-rise-in-chinese-tourists-by-2022.
39 “Record Growth in Chinese Visitors to Dubai,” Khaleej Times, July 18, 2018, https://www.khaleejtimes.com/nation/uae-china-week/
record-growth-in-chinese-visitors-to-dubai.
40 Jonathan Fulton, China’s Relations with the Gulf Monarchies (London: Routledge, 2018), 155.
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China’s Changing Role In The Middle East
F
or MENA actors, Chinese interest in their re- United States looking to get out of the Middle East.42
gion comes at an opportune time, as questions Washington’s attempt to create an “Arab NATO” with
about the US commitment to MENA have be- the Middle East Strategic Alliance (MESA) is taken as
come increasingly relevant. The Iraq War, the another sign that the United States is looking to lessen
Barack Obama administration’s response to the Arab its MENA footprint.43
uprisings in 2011 and the Syrian civil war, and negotia-
tions with Iran in the JCPOA all contributed to a recon- For these reasons, leaders in MENA have been reaching
sideration of how MENA states view the United States out to a wide range of states that have not traditionally
while the US Pivot/Rebalance to Asia and the shale been major regional players. Recent years have seen
revolution have led to a concern that the United States’ Russia, India, Japan, and South Korea all deepening ties
interests in MENA may have shifted fundamentally. with the MENA, mostly in the economic realm.44 This
is especially prevalent in the Gulf monarchies, as their
Likewise, the contrast between Chinese and US ap- most recent attempts toward economic diversifica-
proaches to MENA security has been made explicit tion, and away from a single-resource rentier economic
by several Chinese scholars. Sun Degang, for example, model, have intensified in the post-Arab Uprising era.
describes a soft/hard military approach to the region. Concerns about pressure for political reform, while not
China’s “soft” approach focuses on geoeconomic con- at the forefront, could grow in the face of economic
siderations that address domestic-level concerns for hardship. The price drop in energy markets has badly
both China and MENA states. Its “soft” military pres- shaken Gulf economies, all of which are heavily reliant
ence is not institutionalized, but is mission oriented, on energy exports to fund their generous welfare states.
with temporary deployments. In contrast, the United
States’ “hard” approach is focused on geopolitical con-
Synergies Between “Vision” Plans and BRI
cerns, and features physical military infrastructure.41
This geoeconomic approach is consistent with a de- Each of the GCC states has embarked upon “Vision”
velopmental approach to building MENA security that development plans—Saudi Vision 2030, New Kuwait
Chinese leaders favor, and is consistent with the aid, in- 2035, Abu Dhabi 2030, Qatar National Vision 2030,
vestments, and loans pledged during the 2018 CASCF Oman Vision 2040, and Bahrain’s Economic Vision
ministerial meeting. 2030—all of which are the most recent attempts to
build diverse economies, and foreign direct investment
is an important pillar.
Perception that China is Stepping in as the
United States Steps Back
There is strong synergy between these “Vision” plans
An inconsistent MENA policy under President Donald and the BRI, as the facilities connectivity and poli-
Trump’s administration has not changed the narrative cy-coordination cooperation priorities especially come
that the United States is unreliable and wants to pull into play here. Many leaders in the Gulf have made the
back from the Middle East. Its back-and-forth response Vision-BRI link explicit; Saudi Crown Prince Mohammed
to the dispute between Qatar and the Anti-Terror Bin Salman described it as “one of the main pillars of
Quartet has demonstrated a lack of clarity. The decision the Saudi Vision 2030.”45 This BRI-Vision coopera-
to move the US embassy from Tel Aviv to Jerusalem tion builds easily upon relations that predate the BRI;
angered many across the region. The calls for a total research from the Heritage Foundation shows that
troop withdrawal from Syria and a substantial with- between 2005 and 2014, Chinese construction and in-
drawal from Afghanistan reinforce the perception of a frastructure contracts in the GCC totaled $30 billion,
41 Degang Sun, “China’s Soft Military Presence in the Middle East,” Middle East Institute, March 11, 2015, https://www.mei.edu/publications/
chinas-soft-military-presence-middle-east.
42 Paul Salem, “America’s Mideast Retreat,” Chatham House, February 2019, https://www.chathamhouse.org/publications/twt/americas-
mideast-retreat.
43 Yasmine Farouk, “The Middle East Strategic Alliance Has a Long Way to Go,” Carnegie Endowment for International Peace, February 8,
2019, https://carnegieendowment.org/2019/02/08/middle-east-strategic-alliance-has-long-way-to-go-pub-78317.
44 Jonathan Fulton and Li-Chen Sim, eds., External Powers and the Gulf Monarchies (London: Routledge, 2018).
45 “Fusing Vision 2030 with Belt Road Initiative,” Arab News, September 3, 2016, http://www.arabnews.com/node/979346/saudi-arabia.
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China’s Changing Role In The Middle East
KAZAKHSTAN
UZBEKISTAN
IRAN CHINA
Map of China’s Belt and Road Initiative. Sources: International Road Transport Union, Brookings, Council on Foreign Relations
accounting for 8 percent of China’s global contracts Turkey is another MENA power that can benefit from
during that period.46 a stronger Chinese presence. Its relations with Europe
and the United States have gotten progressively worse
and, under President Erdoğan, Turkey has taken an
Non-GCC MENA State Relationships with
eastward orientation. Turkey has made overtures to
China
the China-led Shanghai Cooperation Organization
On the other side of the Gulf, Iran has been equally wel- (SCO), with Erdogan noting the “common values” that
coming. The bilateral relationship is incredibly uneven; Turkey shares with SCO states, stating, “If we get into
Iran needs China much more than China needs Iran. the SCO, we will say good-bye to the European Union.
This asymmetry is problematic for Iran, but no other The Shanghai Five [former name of the SCO] is bet-
state can offer the same kind of material support that ter—much more powerful.”48 With a challenging set of
China can. For example, in 2017 China’s CITIC Group, relations with its NATO allies and a weakened position
a state-owned investment firm, provided a $10 billion in the Middle East, Turkey could benefit from a better
line of credit to the Iranian government, knowing that it relationship with China through BRI cooperation.
could again face US sanctions.47 That Iran is geostrate-
gically situated in the BRI provides some leverage, but Egypt has been especially interested in China. President
the relationship will remain very one-sided. Abdel Fattah al-Sisi has been to China six times since
46 “GCC Trade and Investment Flows,” Economist Intelligence Unit (2014), 27.
47 Ladane Nasseri, “Iran’s Leaders Are Bolstered by Billions in Loans from the East,” Bloomberg, September 20, 2017, https://www.
bloomberg.com/news/articles/2017-09-20/iran-loaned-billions-as-asian-powers-reject-trump-world-view.
48 Raffaello Pantucci and Alexandros Peterson, “Turkey: Abandoning the EU for the SCO?” Diplomat, February 17, 2013, https://
thediplomat.com/2013/02/turkey-abandoning-the-eu-for-the-sco/.
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China’s Changing Role In The Middle East
Chinese President Xi Jinping attends the opening ceremony for the second Belt and Road Forum in Beijing, China April 26, 2019.
REUTERS/Florence Lo
taking office in 2014, and Chinese FDI into Egypt has Chinese developers are expected to invest $20 bil-
spiked in the same period, drawing more than $15 bil- lion into the New Administrative Capital project, and
lion.49 This can partly be explained as a diversification Chinese banks have agreed to lend most of the $3 bil-
policy by Egypt, as the United States and Europe grew lion needed to build the new capital’s Central Business
more overtly critical of Cairo after al-Sisi’s coup was District.51 With concerns about Western support for the
followed by a crackdown on protests. In comparison, al-Sisi government, Egypt has effectively capitalized on
China’s commitment to non-interference in the domes- Chinese BRI largess. Whether this is an attempt to get
tic politics of other countries presents an attractive Washington’s attention, or represents a smart hedging
alternative. An Egyptian official described the percep- strategy to draw China more deeply into an important
tion of China: “There are economic powers who have Red-Med chokepoint, there seems to be substantial
the ability to help us but not the desire, and others who convergence of interests between Cairo and Beijing,
have the desire but not the ability. China tops the list indicating a deepening bilateral relationship.
of those who have both the ability and the desire.”50
China’s port projects in Egypt, part of the “industrial Israel has been quick to develop its economic relation-
park-port interconnectivity” initiative described above, ship with China, but has reasons to be reluctant about
are substantial, but only part of Chinese FDI into Egypt. deeper ties. The chief of Shin Bet recently described
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China’s Changing Role In The Middle East
Chinese infrastructure projects in Israel as a potential time, nobody expects China to replace the United States
security threat, and called for legislation to supervise in military terms. It lacks the power projection and, more
them more carefully.52 Further complicating the re- importantly, seems to lack this interest. An important
lationship are Israel’s deep ties to the United States, part of this deepening of relations is that it has had a
which has reportedly pressured Israel to downgrade relatively low cost: the United States security architec-
its relations with Beijing.53 Given an unwavering US ture has provided an environment where China knows
commitment to Israeli security, there is little need to that its assets and citizens will be safe. Gulf leaders, in
draw China in as an alternative security provider, and particular, want more, and recent years have seen small
Washington’s concerns about Chinese involvement in steps toward security partnerships, with arms sales, joint
Israel could limit the relationship. training, and high-level meetings between military and
defense officials.54 Importantly for MENA, this instills an
Conclusion expectation that China will be more than an opportunis-
Taken together, there is a trend of states across the tic “free rider.” Increasing regional interests will translate
MENA looking to engage more deeply with China. into a larger role in protecting these interests, an import-
The economic logic described above explains much ant development in an uncertain region.
of this, but there is a strategic logic at play as well.
In the post-2011-uprising world, MENA regional order Beyond the strategic and economic considerations, one
is particularly unstable, leading to competition among other point underscores the attractiveness of Chinese
many states with diverging interests and ambitions for MENA engagement: the BRI represents a positive vi-
the region. This is coupled with the perception that the sion of the Middle East. Whereas Western discussions
United States’ relative power, influence, and commit- about the region tend to describe the Middle East as a
ment to the Middle East are in decline. problem to be solved, the BRI frames it as an important
region in a project bridging states and societies across
Because of this, MENA states have been hedging their Eurasia. A Gulf diplomat recently made this point, say-
bets, trying to maintain the US relationship while, at the ing that with the BRI, China has articulated a clear
same time, engaging more seriously with China. Because future for Eurasia with a positive role for the Middle
Chinese BRI ambitions roughly coincide with this per- East.55 The contrast seems clear: Western capitals seem
ceived US pullback, Middle Eastern leaders are develop- to be suffering from Middle East fatigue, while Beijing,
ing these political and economic relations. At the same still in early days, is optimistic about its MENA future.
52 “Chinese Investments in Israel Could Pose Security Threat, Shin Bet Chief Warns,” Haaretz, January 9, 2019, https://www.haaretz.com/
israel-news/business/chinese-investments-in-israel-could-pose-security-threat-shin-bet-chief-warns-1.6827146.
53 Amos Harel, “Amid Trump Pressure, Israel Mulls Cooling Burgeoning China Ties,” Haaretz, January 7, 2019, https://www.haaretz.com/
israel-news/.premium-amid-trump-pressure-israel-mulls-cooling-burgeoning-china-ties-1.6811090.
54 Fulton, China’s Relations with the Gulf Monarchies.
55 Interview with the author, September 2018.
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China’s Changing Role In The Middle East
W
hile China-MENA relations are fascinating thinking, it was not important in and of itself. The
in their own right, the United States adds revolutionary foreign policy during the early days of
an interesting dynamic. As described the Cultural Revolution, while short lived, damaged
above, many of China’s economic gains China’s reputation in the Middle East—especially on the
in the region can be partially attributed to the US se- Arabian Peninsula, where China’s support for an Omani
curity architecture, which allows China to trade and in- insurgency was meant to overthrow Gulf monarchies.56
vest without a corresponding security role. Much of During the Reform Era initiated by Deng Xiaoping,
MENA’s interest in deeper ties with China can be par- Chinese foreign policy was characterized by the twen-
tially attributed to uncertainty about the United States’ ty-four-character dictum taoguang yanhui (or “hide
future intentions in the region. Any analysis of China and bide”): “Observe calmly, secure our position, cope
in MENA, therefore, has to address the US role in all with affairs calmly, hide our capacities and bide our
of this. Central to this are two questions. Do US and time, be good at maintaining a low profile, and never
Chinese MENA interests converge or diverge? And, do claim leadership.” This led to a deeper level of inter-
their regional policies make room for cooperation, or national engagement, as China worked on building a
are they inherently competitive? wider range of economic and diplomatic relationships.
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China’s Changing Role In The Middle East
Chinese President Xi Jinping attends the opening ceremony for the second Belt and Road Forum in Beijing, China April 26, 2019.
REUTERS/Florence Lo
This indicates that China and the United States actu- willingness to play a larger role in regional diplomacy,
ally share similar interests in the Middle East. Israeli such as when Foreign Minister Wang offered China’s
scholar Yitzhak Shichor has noticed a “relatively high services to mediate between Riyadh and Tehran in
convergence” of US and Chinese “attitudes, policies, 2017.61 At the same time, it is clear that US diplomatic
and behavior on a variety of Middle East issues.”60 He and political power, while perceived to be softening, is
also emphasizes that Beijing does not have anywhere still much more substantial than China’s, and is likely to
near the same level of political influence as Washington remain that way in the near term.
in capital cities throughout the region. This is mostly
because of the tremendous gap between China’s For Beijing, this has to be considered a dangerous
economic footprint and its comparatively small con- vulnerability. Its energy security and access to MENA
tributions to public goods in the region. There is a markets are underwritten by the United States, and
perception that until China is more deeply engaged the US-China relationship is increasingly resembling
on security issues, it will not be considered a top-tier a strategic rivalry. The US National Security Strategy,
player. BRI projects may provide a solid first step to- released in December 2017, describes China in hawk-
ward changing this perception, as might China’s public ish language, referring to a “geopolitical competition
60 Tim Niblock, “Strategic Economic Relationships and Strategic Openings in the Gulf,” in Steven W. Hook and Tim Niblock, eds., The
United States and the Gulf: Shifting Pressures, Strategies and Alignments (Berlin: Gerlach Press, 2015), 16–18.
61 “Ahead of King’s Visit, China Says Hopes Saudi, Iran Can Resolve Problems,” Reuters, March 8, 2017, https://www.reuters.com/article/us-
china-parliament-mideast-idUSKBN16F0KV.
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China’s Changing Role In The Middle East
From the US perspective, China has taken advantage of The implications of China’s 5G network in the Middle
the security umbrella the United States provides, with- East is especially problematic. 5G’s Authentication and
out a corresponding contribution to Middle East stabil- Key Agreement protocol is believed to be unsecure, cre-
ity. China is seen in Washington, as President Obama ating potential data theft or sabotage, which could have
said in a New York Times interview, as a “free rider.”63 national security implications. Huawei, the firm at the
China, not surprisingly, has rejected this claim, noting forefront of China’s 5G services, is perceived as a pos-
peacekeeping forces in Lebanon, its antipiracy mission sible threat, given a Chinese law that requires coopera-
in the Gulf of Aden, and contributions toward stabil- tion with the government in cases of national security.67
ity provided by its economic engagement: “Political Citing this as a security concern, US Secretary of State
mediation and economic engagement, which can help Michael Pompeo has warned, “If a country adopts this
mitigate tensions within and among regional countries, and puts it in some of their critical information systems,
62 “National Security Strategy of the United States,” White House, December 2017, https://www.whitehouse.gov/wp-content/
uploads/2017/12/NSS-Final-12-18-2017-0905.pdf.
63 “The Obama Interview: China as a Free-Rider,” New York Times, August 9, 2014, https://www.nytimes.com/video/
opinion/100000003047788/china-as-a-free-rider.html.
64 Jin Linxiang, “China’s Role in the Middle East: Current Debates and Future Trends,” China Quarterly of International Strategic Studies 3, 1
(2017), 42.
65 “Full Text: Joint Communique of Leaders Roundtable of Belt and Road Forum,” Xinhua, May 15, 2017, http://www.xinhuanet.com//
english/2017-05/15/c_136286378.htm.
66 “BeiDou Navigation System Guides China-Arab Cooperation on ‘Space Silk Road,’” China Daily, April 2, 2019, http://www.chinadaily.com.
cn/a/201904/02/WS5ca3321da3104842260b400a_1.html.
67 Adam Satariano, “U.A.E. to Use Equipment from Huawei Despite American Pressure,” New York Times, February 26, 2019, https://www.
nytimes.com/2019/02/26/technology/huawei-uae-5g-network.html.
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China’s Changing Role In The Middle East
we won’t be able to share information with them, we management of the bilateral relationship. That the
won’t be able to work alongside them.”68 This issue be- House Foreign Affairs Subcommittee on the Middle
came more critical in May 2019 when President Trump East, North Africa, and International Terrorism recently
signed an executive order that blocks transactions of held hearings on Chinese and Russian influence in MENA
technology that “poses an unacceptable risk to the is a hopeful sign that US leadership recognizes a shift
national security of the United States,” adding Huawei in China’s role in the region. Dr. Jon Alterman provided
and its affiliates to the Bureau of Industry and Security especially clear-eyed testimony, noting that “China
Entity List.69 The consequences of this could affect rela- seems to be seeking ways to compete without becom-
tions with MENA states, such as the UAE, Saudi Arabia, ing a rival, and its early results seem positive.”71 Informed
Kuwait, Bahrain, and Egypt, all of which have telecom- analysis of China’s strategic and economic ambitions in
munication firms that have partnered with Huawei. The MENA has never been more important. To this end, the
Africa Cup of Nations, hosted in Egypt in the summer following recommendations should be considered.
of 2019, will be the venue where Huawei rolls out its 5G
phone network for the first time, introducing the tech- • The expansion of Chinese power and influence in
nology at the Cairo International Stadium.70 the region needs to be tracked closely and compre-
hensively, understanding the difference in Chinese
Conclusion and Recommendations for the relationships with each country in the region.
Future
• There is a significant gap in expertise within the US
While there is a divergence in how China and the policymaker community, and this needs to be filled.
United States approach the Middle East, their interests Most US MENA experts lack familiarity with China,
are largely compatible. Both want a stable Middle East and most US China experts lack familiarity with
with strong states that have the capacity to contribute MENA. Similarly, Chinese MENA experts need to
to a regional status quo that supports their strategic become more familiar with the US role in the Middle
and economic concerns. Whether the two can work East.
together in achieving this remains to be seen.
• A track-two effort between US and Chinese foreign
That each perceives the other as its main strategic rival policy experts focused on MENA would help both
suggests that MENA could well be a theater of US-China sides understand each other, identify key proposals
competition. At the same time, there is enough over- for their respective governments and, more gener-
lap of interests that, under the right conditions, it could ally, help maximize the possibility of a Middle East
also be a theater of cooperation. Achieving this is easier that does not become a focus of superpower com-
said than done, and will require careful and consistent petition in the coming decades.
68 “U.S. Won’t Partner with Countries that Use Huawei Systems: Pompeo,” Reuters, February 21, 2019, https://www.reuters.com/article/us-
huawei-tech-usa-pompeo/us-wont-partner-with-countries-that-use-huawei-systems-pompeo-idUSKCN1QA1O6.
69 Tucker Higgins, “Trump Declares National Emergeny Over Threats Against US Technology Amid Campaign Against Huawei,” CNBC,
May 15, 2019, https://www.cnbc.com/2019/05/15/trump-signs-executive-order-declaring-national-emergency-over-threats-against-us-
technology.html.
70 “China’s Huawei to Launch 5G at Africa Cup of Nations in Egypt,” Arab News, April 22, 2019, http://www.arabnews.com/node/1485906/
business-economy.
71 Statement before the House Foreign Affairs Subcommittee on the Middle East, North Africa, and International Terrorism, “Chinese and
Russian Influence in the Middle East,” A Testimony by Jon B. Alterman, May 9, 2019, https://www.csis.org/analysis/chinese-and-russian-
influence-middle-east.
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China’s Changing Role In The Middle East
D ij
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Egypt
Ira q
Comprehensive
Strategic
Partnerships
Jordan I ra n
Strategic C hin a
K u w ait Partnerships Sa
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Ara b
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Un
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Mo A ra b E m
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Qatar
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ATLANTIC COUNCIL 19
Board of Directors
Atlantic Council